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30 Banking Awareness Questions And Answers

30 Banking Awareness Questions And Answers

21. Number of deputy Governors in RBI? Ans: Four 22. Ways and means Advances was in force since? Ans: 1977, April 1 23. The main function of NABARD? Ans: Provide refinancing facility 24. In which circumstance Dear money policy will be adopted by Reserve Bank of India? Ans: Inflation 25. Through which instrument recently RBI has decided to buy upto 12000 crore of Govt. bonds? Ans: Open market 26. Name of the organisation that was established by State Bank of India for buying and selling the Govt. securities? Ans: SBI Gilts limited 27. Stagflation refers to? Ans: Inflation with recession 28. Growth in M0 (Reserve money) during 2009-10 was? Ans: 17 percent 29. Growth in M1 (Narrow money) during 2009-10 was? Ans: 18.6 percent 30. Which committee recommended the measurements like M0, M1, M2 and M3? Ans: Y.V. Reddy committee 31. Growth in M3 during 2009-10 was? Ans: 16.8 percent. 32. Greshnam’s law states? Ans: Bad money drives good money out of circulation 33. Time deposits with banks are included in which measures of money stock? Ans: M3 and M4 34. The RBI can increase the demand deposit component of the money supply by? Ans: Lowering reserve requirements and increasing the volume of reserves 35. Financiary issue implies? Ans: The issue of currency notes without metallic banking 36. Open market operations means sale or purchase in the open market of? Ans: Government Securities 37. In an economy high-powered money is equal to? Ans: Monetary liabilities of Central Bank and Government money 38. Saving deposits are not a part of money stock measure M1 because? Ans: They are not used as medium of exchange 39. Which factor does not affect the balance sheet of Reserve Bank of India? Ans: Loan taken by one commercial bank from the other 40. The most liquid of all assets is? Ans: Money 41. If Reserve Bank of India raises the Cash Reserve Ratio then? Ans: The value of money multiplier decreases 42. Other things being equal, an increase in the supply of money? Ans: Lower nominal interest rate and raises aggregate demand 43. The function of World Bank (IBRD) is? Ans: Promote growth of International trade and equilibrium 44. The supply of money consists of ? Ans: Notes, Coins and Demand deposits 45. Banking companies (Acquisition and transfer of Undertaking) Act was passed in? Ans: 1970 46. Fiat money is? Ans: Which is accepted temporary in lieu of gold 47. A rise in the money supply will lead to? Ans: A rise in the demand, A rise in price level and a fall in the interest rate 48. CAR refers to? Ans: Capital Adequacy Ratio 49. International liquidity is regulated by? Ans: International Monetary Fund 50. A ‘Soft Currency’ is a currency that? Ans: Which can not be used for setting international transactions because it does not command a value in the international market